Henry Sy, Sr.

: Inspiring generations of growth

INQUIRER.net BrandRoom / 08:00 AM October 15, 2023
Written by: Tina Arceo-Dumlao

Source: Henry Sy, Sr.: Inspiring generations of growth (inquirer.net)

On October 13, 2023, in time for the birth anniversary of SM Group founder Henry Sy, Sr. and the
celebration of the 65th year of SM, SM Prime Holdings, Inc. opened SM Center San Pedro in San Pedro
City, Laguna. It’s the fourth mall in the province and the group’s 84th mall in the Philippines.

By 2026, the plan of SM Prime Holdings, Inc., one of the leading integrated property developers in
Southeast Asia, is to have opened 100 SM malls.

Tatang, as Henry Sy, Sr. was fondly called, would undoubtedly be happy to know that the SM malls have
become more than just retail and entertainment centers under the watch of the next generation. They
have become catalysts for robust growth, thus enhancing economic and civic activities across the
Philippines.

That the SM Group continues to expand and bring its unique brand of service and convenience to more
Filipinos is a testament to the enduring legacy of Henry Sy, Sr., the Father of Philippine Retailing. His
vision, passion, and determination enabled him to build a business empire from the first Shoemart in
downtown Manila that he put up in 1958.

The idea that the SM Group – one of the country’s largest conglomerates with interests as well in
banking, logistics, and infrastructure development – had humble beginnings, is a constant source of
inspiration for many Filipinos. More so for SM Supermalls’ valued tenant-partners, a number of whom
are also passing on the reins to the next generation.

Amelia Manas, co-founder and chairperson of Bruno’s Barbers, did not have the pleasure of directly
interacting with Tatang, but did see him from afar in one of the SM malls.

Even then, Manas was inspired to pursue the growth and diversification of Bruno’s Barbers, guided by
Tatang’s example of how big things such as SM can come from small beginnings.

Manas draws parallels with the story of Bruno’s Barbers, which also started from a single branch in
Alabang and has now grown to 20 cafes and 31 kiosks in SM malls all over the country.

“There is the story of how Henry Sy, Sr. and his family would gather for weekend lunch. We do the same.
And like them, we also always end up talking about business,” Manas shared with a smile.

For her son Marco Pascual, who took over the reins of Bruno’s Barbers as president in 2019, Tatang also
demonstrated by example how it is important to work for a vision that goes beyond just the business.

“As leaders, what we bring to the table should be beyond oneself. His life and accomplishments will
always be an inspiration for me because of his contributions to the economy of the country and the
Filipino people,” said Pascual.

Following Tatang’s footsteps, Bruno’s Barbers contributes what it can by providing jobs to some 1,200
people, which creates a positive ripple effect for their families and lives that they touch.

“We at Bruno’s Barbers continue to be aligned with SM. We want to be closer to our customers while
providing livelihood for our countrymen,” he said.

Like Pascual, Adrian Dimacali, Director of the group behind the popular and fast-expanding chain of
Mary Grace Cafes that was founded on the baking skills of his mother, Grace, was also encouraged by
Tatang’s oft-retold rags-to-riches story, of how rewards inevitably come from honest hard work and
discipline.

“I remember one time, my Mom and I were meeting someone and I saw a picture of Henry Sy, Sr. and
his family. We were reflecting on how difficult the business was and questioning whether we should keep
building. I told her, we are just opening restaurants, they are opening big malls,” he said, “They are
doing their part to keep the economy going, to provide opportunities to tenants. I guess we have to
keep opening too, to help our people and our suppliers.”

Mary Grace Café opened its first SM branch at SM Southmall in 2012 and from there expanded its SM
footprint 20 cafes and 31 kiosks in SM malls all over the country.
“Now we have a five-year plan because when you reach a certain point, you have to protect what we
have built,” said Mary Grace, “That is always my prayer because it is a gift, this business of ours. Good
thing that I have my daughter and my sons with me and each have their own talents that make the
business thrive!”

Malou Fores, the driving force behind the acclaimed Mamou restaurants, and her husband Jorge “Oye”
Araneta Fores, who is in charge of finance and marketing for the chain, can certainly relate to the
challenges as well as the rewards from harnessing the power of family to grow an enterprise from the
ground up.

And like the Dimacalis, they are constantly inspired by Tatang’s compelling and unique growth story that
has lost none of its significance from every retelling.

Jorge shares that Tatang – who has an SM Department Store in the Araneta Center – was a regular visitor
to the Cubao home of his uncle, Araneta Group CEO Jorge Araneta, and he recalled how he and his
siblings and cousins were not allowed to disturb them while they had their discussions over a hearty
home-cooked meal.

“That must be about 35 years ago when they would have one-on-ones in the house. I was moved by
that sight, of these two people I admired who saw each other as equals and partners, not one who is a
lessor and one who is a tenant. There was mutual respect,” he said.

Malou and Jorge Fores apply the same principle of partnership and collaboration in the way they are
growing their business, seeing SM Supermalls, for example, as an integral partner in the success of
Mamou, which now has six restaurants including the latest branch at SM’s S Maison at Conrad Manila.

“I always see business as something that is a partnership. I have worked on both sides, as a mall
manager and now as a lessee. I know that for a relationship to work, you cannot say I am a landlord and
you are a tenant. It has to be a mutually beneficial relationship,” said Jorge.

That business principle has paid dividends for the SM Group and promises to do the same for the
celebrated Mamou.

Their son, Raul Fores, has taken the strengths of his parents – he has the same passion for cooking and
personal customer service as his mom, Malou, and the business smarts from his father’s experience as
both lessee and landlord. With that, he shared that he would like to explore more avenues where
Mamou can go as well as other future dining concepts.

Toby Claudio, President of Toby’s Sports, co-founder of RUNNR, urbanAthletics, and Total Sports, Inc., can
relate well to the desire to expand in new directions as Tatang has done so.

Toby’s Sports group has grown from what it was when his father started a lifelong relationship with the
SM Group.

Toby’s Group has a network of 68 branches, more than half of which are in the SM malls.

That would not have been possible without Tatang’s encouragement, said Toby’s Sports’ group founder
and chairman emeritus Roberto Claudio. Tatang was always there to push entrepreneurs like him who
were just starting out to face down challenges.

“He was really an inspiration, he would always prod you on when you talk to him about potential
problems or when you are having doubts,” shared Claudio, “He would always say, don’t mind the
problems, face them, go around them. I am sure you will succeed.”

Fortunately, the Claudio family heeded Tatang’s sage advice to persevere and forge ahead through hard
work, grit, and perseverance.

“He told us then, huwag kayo matakot sa failure. You guys are young, you can afford to fail. If you just
persist, you will succeed,” said Claudio, who also heads the Philippine Retailers Association.

The younger Claudio, for his part, has learned two major lessons from Tatang’s life.

“The first is to just take risks, even if there is a lot at stake and even if failure is a possibility, if you really
believe in it. The second is to always innovate. There were already shopping centers, for example, when
he started, but the kind of mall that Henry Sy, Sr. wanted to build was totally different, and so he gave
Filipinos something they did not even know they wanted.”

For Bernie Liu, chairman and CEO of the Golden ABC, the proudly Filipino-owned and run fashion
enterprise behind such brands as Penshoppe, OXGN, Regatta, Forme, Memo and Bocu, what struck him
in his interactions with Tatang was his close attention to detail.

Liu can still vividly remember how Tatang would walk around the department store – where Penshoppe
started as a supplier in 1986 – with a team behind him noting his observations and taking down his
instructions.

“He was very particular about the product display. I remember when we opened our module in SM
Makati, there was a portion that he thought was too dark. He said that should be changed,” Liu said.

He added that Tatang was ‘really hands-on and very down to earth.’

Liu noted that it was largely expected that successful people like Tatang would control his growing
enterprise from an ivory tower. But that was not Tatang’s style. He preferred instead to walk the floor
and keep his ears close to the ground in anticipation of the next growth opportunities.

The Liu family’s belief in that growth vision, too, is a major reason why they have made it a point to
open their stores together within each new SM mall. Today, the Penshoppe Group has over 350 sites in
SM malls across the Philippines, accounting for about a third of its extensive national footprint.

“They’ve always been part of our growth. I always tell their team, if you invite me, of course I will go,”
said Liu, whose own team includes his wife, Alice, now president of the group, and his children, Bryan,
Brandon, and Amanda, all of whom have growing roles in the company.

Bryan is vice president for strategy and operations, Brandon is brand director of Penshoppe while
Amanda is e-commerce product manager and founder of the fast-growing Bocu chain.

Like other second-generation entrepreneurs, the Liu siblings are guided and inspired by Tatang’s
example and now apply these lessons as they prepare to eventually carry on their own parents’ and
grandparents’ legacy.

“Penshoppe is only a few years older than I am, and so I grew up immersed in an environment with
amazing role models—my parents and grandparents who worked tirelessly and passionately to serve
both customers and employees. Now that it’s our turn, my siblings and I promised to honor their legacy
and work hard at growing it so we can do greater things for the people around us,” said Brandon.

Tatang may seem larger than life considering all that he has accomplished over the years, but for those
who were lucky enough to know him, he was very much human–a warm and generous spirit who was a
constant source of motivation. He was a visionary who helped them on their own journey into becoming
leaders and trailblazers in their chosen markets.

Precy Ramos, who worked side-by-side for many years with her mother-in-law and National Bookstore
founder Socorro Ramos, recalls fondly how Tatang personally supervised the construction of SM North
Edsa – the first SM Supermall that opened in 1985 – with an eagle eye on the smallest of details to make
sure that they were up to his exacting standards.

Tatang also made the extra effort through many years to ensure that SM malls would have the right
space for National Bookstore, a revered name as well in Philippine retailing.

This solid partnership was a testament to the close personal and professional relationship that Tatang
shared with Nanay Coring. She saw Tatang flourish from their early days in what used to be the
commercial district of Avenida.

“During Tatang’s 80th birthday celebration, for example, he sent somebody over to get Nanay.
She sat beside him [during the party], katabi niya the whole time,” shared Ramos, “They really had a lot
of respect for each other.”

They both grew, and both Tatang and Nanay Coring have been able to pass on what they had built to
their children. In National Bookstore’s case, the baton has been passed to the next generation
represented by Adrian, the current president, who is guiding National Bookstore toward full recovery,
growth, and expansion.
Like Liu and Ramos, Victor Siasat, CEO of Trimark Group Holdings Inc. that represents a multitude of
leading international brands across a wide range of industries from high fashion to streetwear, fitness
and new media, deeply admired and respected Tatang’s famous attention to detail. To him, it was an
indication of how seriously Tatang looked at business.

Siasat considers Tatang a pivotal figure in his life as he got his major break as a retailer and distributor
at SM, first with Guess in 1991 at Megamall, followed by the second branch at the annex of SM North
Edsa.
From that first blockbuster brand, Siasat’s Trimark today handles some 60 brands including Mossimo,
Mango, Vans, Carolina Herrera as well as Gold’s Gym and employs approximately 5,000 people.

And Siasat is not yet done expanding and exploring. Like Tatang, Siasat is deliberate in his approach to
growing his sprawling business group, but he has loosened his grip on the company reins and his
children have come on board.

His son, Fergus, for example, is looking at introducing better efficiencies across the group as well as
bringing in more brands that may appeal more to the higher-income markets. Tatang’s life story always
helps keep them grounded and at the same time inspired to reach for more, even if they have already
made a mark in the local retail industry.

“A lot of people I meet always tie Tatang’s story with inspiration. How did one man take his company to
where it is? It is kind of unfathomable. He impacted many lives,” said Fergus.

George Mirani, the chair of the dominant Mirani Group, which retails and distributes internationally
recognized fashion and lifestyle accessories brands in the Philippines, certainly shares similar life
principles with the Sy family, whom they have known for decades.

Indeed, the SM Group has been instrumental in the growth of the Mirani Group, which operates 70
concession spaces for timepieces, and 31 stores for timepieces such as Watch Republic and 35 stores
for top fashion brands, including Parfois, Triumph, Etam, Ever New, and Yves Rocher in SM Supermalls.

Mirani, however, started the group’s relationship with SM back in the late ‘70s as he would sell
houseware, glassware, and gift products to what was then Shoemart.
Over the succeeding years, as the SM malls rapidly expanded, the Mirani Group did, too, diversifying
from housewares to distribution of one brand after another. Today, it is one of the successful Filipino
companies in retail and distribution.

“What you learn from Tatang through doing business with Tessie Sy-Coson is to think ahead,” said
Mirani. “From the time we started business until about 1986, we were all, at that time, short-sighted
businesspeople. Nobody knew about transformation, where things were headed after the Ninoy Aquino
assassination. However, there was this gentleman opening a mall. I remember at that time, people were
saying Tatang was making a huge blunder as these were unprecedented times,” he shared.

Tatang certainly proved his naysayers wrong, and the opening of SM North Edsa at that time catapulted
him into a higher level, Mirani said. It has continued to reach higher goals long after Tatang’s passing,
taking along partners such as the Mirani Group.

But among the entrepreneurs who got to interact with Tatang, perhaps Lydia de Roca, founder of the
58year-old Lydia’s Lechon, had the most unique encounter.

De Roca shared that back in 1989, she noticed that on Sundays, a Chinese gentleman would religiously
order and quietly enjoy his own 1/4 kilo lechon with rice in a little corner of her first store in Baclaran.

He wore a simple shirt with shorts and slippers and had an empty bayong by his side. After having his
fill of Lydia’s already popular lechon, he would take his bayong and then proceed to the nearby Seafood
Market and fill his bayong with seafood.

After several weeks, de Roca got curious about the gentleman and eventually asked his driver who he
was.

’Di nyo siya kilala?,’ sabi sa akin. Sabi ko ‘hindi.’ Siya si Henry Sy, Sr., yung may ari ng SM, lahat ng SM
sa kanila,” recounted de Roca. She was taken aback that such a rich and influential person would be so
simple and unassuming.

The following Sunday, de Roca approached Sy and introduced herself, sharing how she owned the
branch, but that she started with a small lechon stall outside the Baclaran Church.
To her surprise, Tatang asked her if she wanted to put up a stall in the SM Food Court. De Roca took him
up on his offer and opened the first Lydia’s Lechon in the food court of SM Sta. Mesa. This was in 1990.

She has not looked back since and Lydia’s Lechon has grown into a chain of 28 branches, a far cry from
where the bangketa where she started.

“Kaya lagi ko siya pinagdarasal noon, sabi ko, ‘wag mo po siya pababayaan,” shared de Roca. She
added that because of him, the centavos that she used to keep as profit turned into thousands, and
eventually, millions.

Now entrusted to take Lydia’s Lechon to its next growth phase are her children, including her daughter
Lyd, who is credited for diversifying into other product lines such as bottled sauces and canned viands
for easier delivery and distribution to other countries where Filipinos are hankering for Lydia’s food.

Lyd shares with a laugh that she and her mother do not always see eye to eye when it comes to life and
business. But they both welcome the friction as productive discussions in the family lead to growth,
especially as she and her siblings are united in the vision of elevating Lydia’s Lechon both in look and in
size to the next level.

For Eric Teng, CEO of The Mango Tree and Gengki Sushi, what Tatang went through to grow his empire
from the Shoemart store in Manila showed them that to succeed, one must be willing to work harder
than everybody else.

“Do it for the family. For their security. For their future. Don’t quit. The harder times are just part of life
that we overcome,” said Teng.

“I totally agree with Tatang on the value of hard work. Being able to see things others cannot and
leading everyone through hard times to thriving times is a gift [of Tatang that] I wish I had. You can’t go
wrong by working hard. And we must surround ourselves with people who are equally driven by the
same life principles,” added Teng.

Teng is happy that the qualities of professionalism that drove Tatang as one of the linchpins of his
success, have permeated throughout the organization today, making SM malls a great partner for their
many concepts.

“They have shaped the consumer economy that we take for granted. It’s hard for me to imagine a
Philippines today without an SM mall. And it’s hard for me to imagine our businesses not being in SM,”
he said.

“As SM expands, we see ourselves growing with them. Through good times and bad. We did that before
and after the pandemic, and we are much better and much stronger because of this partnership,”
added Teng.

It is a feeling shared by the hundreds, if not thousands, of other entrepreneurs and partners, like him,
who have been touched by the SM brand in a myriad of ways, born out of the vision of the singular
Henry Sy, Sr.

Read more: https://business.inquirer.net/426569/henry -sy-sr-inspiring-generations-

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